Orchard Bank Credit Card Portfolio Acquired by Capital One
On August 10, 2011 Capital One announced they were purchasing HSBC 's credit card division in North America. The deal was worth $2.6 billion dollars. The reason for the sale: HSBC was cutting services in hopes of lowering their operating costs. They recently stated that they were planning to layoff up to 30,000 workers; with the sale of their credit card business and other businesses, HSBC will not need as many workers to handle the load.
HSBC is the issuer of Orchard Bank credit cards.
What This Means For Current Cardholders
You will be receiving a letter in the mail stating that Capital One has purchased this account and if your account is in good standing, you should receive a new card shortly. You will have to activate the new one before before your first use, or if you don't want a Capital One card, you can simply destroy the new card and call their customer service to close the account.
The letter will give you instructions on how to pay your bill. You might be able to send your next payment to the usual address, but future payments should be addressed to Capital One.
You may still use your current card until a new one arrives.